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Fabric Sourcing

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Kelsey Sides

on 18 September 2012

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Transcript of Fabric Sourcing

Julie Blake Fabric Sourcing Do not feel hesitant to ask those questions because at the end of the day if something does not match the buyers requirement, everyone will suffer losses.

Many garment buyers demand very short, sometimes unrealistic delivery lead time. You should consider the lead time required for each necessary activities like LC opening, sample approval, lab dip approval, one or two re-submits that may be required, inspection and shipment time for the fabric, clearance and transportation to the warehouse and all related activities. Things to keep in mind Purchasing the right fabric can be sometimes a tough challenge faced by apparel manufacturers.
Out of the total cost of manufacturing a garment piece, the cost of fabric can contribute between 50 and 65 per cent.

- Most apparel merchandisers do not have the necessary knowledge or training to order the right fabric from the right manufacturer at the right price. To be on the safer side, they simply ask various suppliers to bid for their lowest price and finally select the one who offers the lowest price. Air shipment The cost of air-freight is so high that air shipment of a single consignment of garments may wipe off the profit of a few months for the garment manufacturer. A study revealed that more than 80% of all garment air shipment is caused due to poor fabric sourcing management. Source:The Right Fabric Sourcing Practice for Apparel Manufacturing Source: Chinese Customs Administration as reported by the Global Trade Atlas Quota Eliminations -Recently, China and other World Trade Organization countries have eliminated quota restrictions on their exports
-This creates a dramatic shift in where companies choose to source their fabric and apparel- companies are now looking to source closer to where they are manufacturing versus deciding based on who has quota restrictions
-China is expected to increase its share of worldwide apparel and textile production Quota Elimination -By eliminating quotas and the fees that come with them, companies have been able to save money
-Fabrics such as silk have never had quotas and never will because it isn’t produced in the U.S. to begin with- only over seas
-While quota fees are no longer in place, import duties are still in effect
-Certain regions are working together to create programs like NAFTA to eliminate or reduce these duties
-Right now, congress is discussing passing a Central American Free Trade Agreement Quota Elimination Critical errors When discussing with the garment buyer, do not just talk about the target price he or she is giving you. Ask about the fabric in more detail. This is not only about the counts, construction and weight of the fabric but about some important and critical points. Transportation and storage Sourcing for Quality

Source: Evaluating Fabric Suppliers
by Mary Scannapieco Evaluation Determine importance
Rate priorities
Analyze performance Mill capacity
Late deliveries
Yardage minimums
Market information
Color matching
Analyze price
Discuss results with suppliers Other factors A growing number of Americans are living in Asia (mostly China) and are dealing with design, quality control, delivery, and service issues.
China is on top as the largest Asian fabric sourcing country.
Companies that had originally sourced in America were forced to transfer their sourcing to China in order to keep up with competitors who were producing at a faster rate.
Partnerships with American companies are strong through the direct sales to manufacturers.
QUALITY and DELIVERY are the two most important factors through the importation of Asian-sourced fabrics. Why Asia? 2007 marked the first year that fabric sourcing exploded for China.
Over time, new markets began to explore and then adopt Asian fabric sourcing as part of production for their companies.
Newest and biggest market - FURNITURE - this includes both outdoor and contract as well
The pull towards Chinese sourcing was because of their focus on QUALITY, INNOVATION, and SPEED as well as LOW COST BENEFITS. Not Just Fashion Searching for the Perfect Fabric Alex Duffley Annie Eavenson Kelsey Sides Kate Vranac Chelsea Reagan Source: By Florence Palpacuer Global Sourcing
Patterns of French Clothing Retailers:
Case Study French Retail Sourcing Timeline 1970 2000 1990 First chain development out of the US market into Asia (Hong Kong, Korea, and Taiwan) 1980 Second global chain development of basic jeans, T-shirts, and undergarments Engaged in foreign sourcing French clothing equally distributed between zones GVC: Global Value-Chain
QR System: Quick Ratio
GVC literature sees product and market characteristics as key determinant of the shape and dynamics of global production
labor-intensive versus technology-intensive and capital-intensive
corporate financialization Determinants of Sourcing Patterns in GVC's In 1999, French market for clothing
In 2000, clothing equaled 3.9% of total consumer spending
The depressed market enhanced competition Overview of French
Clothing Retail Scene Internal Organization
Large retailers internalized production design and pattern-making functions
Intermediaries in French Retailer's Supply Chain
French retail firms buying Asian-made garments
Boost product development must be supported by direct hands-on control over production chain
Buying Methods and Services Expected from Suppliers
3 Methods: negoce pur, full-package, travail a facon Global Sourcing Strategies Criteria used for the selection of Suppliers
Components of retailer-supplier 'partnerships' Supplier-Relation
Management "Throwaway fashion" now termed fast fashion was popularized in the 1990's and consists of high fashion garments at low cost. Introduced globalization of sourcing. Sourcing in the Fast Fashion Industry •Asymmetrical power distribution between the retailer and the supplier in which the retailer has more control over the supplier Relationship Between Retailers and Fabric Suppliers •The key competencies that affect the relationship are vitality, flexibility, punctuality, productivity, and quality
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